⚫⚫Insurance:
⚫ A contract whereby one person called the insurer undertakes, in return for the agreed consideration called the premium, to pay to another person called the assured a sum of money,or it's equivalent,on the happening of a specified event .
The specified event must have some element of uncertainty about it, the uncertainty may be either:
⚫◾ As the case of life insurance the time of happening of this event is uncertain.
⚫◾ In the fact that the happening of the evening depends upon accidental causes, and the event , therefore, may never happen at all ( Such event is called accident) .
⚫⚫ Importance of insurance:⚫⚫
⚫◾Risk and uncertainty are part of daily routine in human life no one can escape these factors in human activity.
Man can easily confront and tide over small risks and uncertainties.However, in economic activity sometimes the effects of these trivial risks and uncertain matters poses very difficult challenge.
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